What causes you to select one O/O lease program over another?

Discussion in 'Trucker Taxes and Truck Financing' started by Truckload Gurus, May 20, 2013.

  1. Truckload Gurus

    Truckload Gurus Bobtail Member

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    May 20, 2013
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    I am a part of the trucker community as a trucker's wife and as a dispatcher. I've been asked by a couple of small carriers to assist with O/O recruitment so my question to the Trucker Forum community is what causes you to select one lease program over another? For example, one carrier offers lease to own programs for $1500 down. Another doesn't offer an equipment program but does allow you to choose your loads, or finds them for you depending on your equipment. Is the line haul % the deal breaker? What are your thoughts?
     
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  3. WorldofTransportation

    WorldofTransportation Heavy Load Member

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    It is simple.. to quote Randy Moss.. "straight cash homey"
     
    losttrucker Thanks this.
  4. Aireal

    Aireal Medium Load Member

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    I think their are two seperate questions their. 1) what would atract an o/o to contract on with a company? And 2) what would atract a company driver to get into a lease purchase with a company?

    1) for some it's going to be all about the money for others being able to be choosier about which loads they take may tip the decision.

    2) while money is a big factor, what repairs are covered under the "matience" clause is a HUGE consideration ( or should be), the ability to refuse a load (* big thing IF the company doesn't cover tolls) covering tolls and pre-pass, no "slip seating" if the l/p takes more than 2 or 3 days off (I'm buying it, I'm not taking all my stuff out and I don't want someones grubby hands on MY things). Straite up NO balloon payment at end.

    My husband looked at L/P for almost a yr and I found something wrong with every single company he wanted to go through. I was looking into financeing a truck and then contracting on with someone. He "snuck one by me" when we got to WFE, their was nothing on-line that said the l/p'd, I returned to our room at lunch to get our bags ( so we could get into our company truck) an hr later he called and said come back we are going l/p, I want you to read the paper work for me, I could happily have shot him.

    It's not that is's a "bad" deal, it just isn't a GOOD deal for us
    i
     
  5. CDL1968

    CDL1968 Medium Load Member

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    Company sponsored truck leasing in America

    There comes a point and time when a trucking company wants to make the next step and truck dealers/manufactures are holding the carrot in front of them. I know because my brother company hit this wall 10 years ago and I'm there now with my company.

    Its like this I would normally buy "X" number of trucks in "Y" number of years for "P" number of dollars = (X x P)/Y=$$

    The plan is I would agree to buy "X" number of trucks in "Y" number of years for "C" number of dollars = (X x C)/Y=$

    WOW, sounds excellent right?

    If the company is not able to expand Very rapidly three outcomes tend to happen. 1) The company starts a leasing program to take some of these excess trucks off their books quick while they rush to expand. 2) The company doesn't start their leasing program in time and ends up out of business (i.e.: Cannon Express with International) 3) The company doesn't start their leasing program in time but is lucky enough see the road ahead and sells the company before there is to much blood on the books.

    So why do company lease contracts not allow drivers to take their truck to other companies?

    1. The trucks aren't owned by the driver in fact they aren't even really leased to them they are more like promissory notes or contracted service agreements, all the driver receives is an agreement to stay in the same truck for "X" amount of time at which point they can have the truck which normally is near/or at the end of its usefulness.
    2. The trucks are still shown on the company's books as assets (+) under expense it is ZERO cause the driver is making the payment and then some
    3. This makes the company look excellent on the books with the value of all these assets appearing to be paid off.

    i.e.: If you were able to buy a $150,000 truck for only $100,000 and then have someone pay you $150,000 for it wouldn't that be the best. Wait a minute you sold them the bridge, now lets put a toll on it. So now, tell this person you may use the truck the whole time but you can only use it to make me more money. You pull my stuff that I will be paid $2 per mile for and I will pay you $1 per mile.

    I hope that helps.
     
  6. Truckload Gurus

    Truckload Gurus Bobtail Member

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    May 20, 2013
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    If anyone would be willing to a take a look at a lease program overview I have and give me your feedback from a trucker's point of view I would really appreciate it. Trucking is my second career and I don't claim to know it all; my husband has been a trucker for 15+ years but OTR for only 4 years. I'd like to be able to advise the ladies and gentleman I am contacted by through dispatching a little better. Message me or I can give you my E-mail address.
     
  7. BubbaTrucker

    BubbaTrucker "Iam Hanging in there"

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    im interested in lease purchase with a company... all i ask is for is average 900 to 1000 a week after taxes and home every other weekend .. if i can find that , i would jump to a L/p right away .. providing the truck has a apu and a manufacturers warranty yet ...
     
  8. pawpaw1

    pawpaw1 Medium Load Member

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    I've heard of some success stories , a lot more of failures. At least , with your criteria , you've eliminated about 90% of the possibles.
     
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